US Suspension of Indian IT Firms from PERM Programme

Context:

On October 8, 2026, the US administration announced the suspension of eight major technology and IT services companies from the Permanent Labour Certification Programme (PERM), citing alleged visa fraud and concerns about adverse effects on employment opportunities for American workers.

• • • These companies include Tata Consultancy Services (TCS), Infosys, Wipro, HCL, Cognizant, Capgemini, Microsoft, and Adobe. This move could affect the process of obtaining Green Cards through these companies.

What is the PERM Programme?

• • • PERM stands for Program Electronic Review Management. It is a process administered by the US Department of Labor, under which an employer must obtain labour certification before sponsoring a foreign employee for an employment-based Green Card.
    • Under this process, the employer is generally required to demonstrate that there are not sufficient qualified, willing, and available US workers for the relevant position and that employing a foreign worker will not adversely affect the wages and working conditions of US workers.
    • A Green Card grants permanent residency and the right to work in the United States, whereas an H-1B visa allows foreign professionals to work temporarily in speciality occupations. Suspension from the PERM programme does not automatically mean the cancellation of H-1B visas or Green Cards that have already been granted.

Major Reasons Behind the US Administration's Action:

• • • According to the US administration, the employment of foreign workers by certain companies has affected employment opportunities for American citizens. The Department of Labor has cited investigations into alleged fraud, wage-related irregularities, and the potential misuse of immigration programmes.
    • US officials claimed that, since 2009, the companies concerned had filed requests involving approximately 3 million foreign workers and had received more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications.
    • However, these figures and allegations have been presented by the administration. They should not be treated as proof of established fraud by the companies concerned.

Impact of the Action:

• • • The most direct impact of this decision may be on Indian professionals whose Green Card applications are being processed through the affected companies.
      • Delay in Permanent Residency: The suspension of new PERM filings and the interruption of application processing may delay the acquisition of Green Cards.
      • Career-Related Uncertainty: Prolonged delays in obtaining permanent residency may affect employees' ability to change jobs, live with their families, and plan their long-term careers.
      • Changes in Talent Migration Patterns: Some professionals may explore opportunities in India or other countries.
      • Increase in Corporate Costs: Companies may incur higher expenditure on legal compliance, employee retention, and alternative human resource strategies.
    • However, the impact will depend on each employee's immigration status and the stage of their application.

Impact on India-US Relations:

• • • Information technology, trade, investment, and the mobility of skilled professionals are important areas of cooperation between India and the United States. Indian IT companies provide American businesses with services such as software development, digital transformation, cybersecurity, and technical consulting.
    • Stricter immigration policies may put pressure on the operations of Indian companies and the mobility of their professionals. On the other hand, the United States argues that protecting domestic workers' interests and ensuring compliance with immigration regulations are essential. Therefore, both countries need to maintain a balance between workers' rights, fair competition, and commercial cooperation.

Way Forward:

India should focus on the following measures:

• • • Strengthening the Domestic IT Sector: Increase investment in areas such as artificial intelligence, semiconductors, cloud computing, and cybersecurity.
    • Diversification of Export Markets: Expand IT services in Europe, Japan, South Korea, Australia, and Southeast Asia.
    • Skill Development: Train Indian youth in emerging technologies and in accordance with global certification standards.
    • Diplomatic Dialogue: Promote institutional dialogue between India and the United States on issues related to professional mobility and immigration procedures.
    • Strengthening Compliance Mechanisms: Indian companies should ensure strict compliance with US labour laws, wage standards, and immigration regulations.

Conclusion:

The US suspension from the PERM programme reflects growing tensions between global labour mobility, domestic employment protection, and technological competition. For India, this challenge also presents an opportunity to strengthen domestic technological capabilities while safeguarding its IT exports, employment generation, and foreign-exchange earnings. In the long term, skill development, market diversification, and rules-based international cooperation can make India better equipped to respond to changing global immigration policies.